Brasília – The consolidated public sector, which includes the federal, state and municipal governments, registered a primary surplus (savings for payment of debts, including interest) of R$ 4.107 billion Brazilian reals (US$ 1.7 billion) in February. The figures were disclosed today (31) by the Central Bank (BC).
In the first two months, the primary surplus reached 9.295 billion reals (US$ 4 billion), which answers to 2% of the country’s Gross Domestic Product (GDP).
The central government (Social Security, Central Bank and National Treasury) contributed with 903 million reals (US$ 388 million). The state governments economized 2.793 billion reals (US$ 1.2 billion) and city governments 390 million reals (US$ 167 million). State-owned companies contributed with 21 million reals (US$ 9 million).
But the economy made by the public sector was not enough to cover expenses with interest, which reached 10.179 billion (US$ 4.4 billion), in February. With this, the nominal deficit was 6.072 billion reals (US$ 2.6 billion). In the first two months, expenses with interest totalled 24.618 billion reals (US$ 10.6 billion) and the nominal deficit was 15.322 billion reals (US$ 6.6 billion).
In the accumulated result for the last 12 months up to February, the primary surplus totals 99.704 billion reals (US$ 42.8 billion), or 3.43% of GDP.
According to the BC, the net debt of the public sector totalled 1.091 trillion reals (US$ 468 billion), which corresponds to 37% of GDP. In January, this percentage was 36.9%. The lower the debt to GDP ratio, the greater the investor confidence that the country is capable of honouring its engagements.
The BC figures are based on financing of the public debt, calculated from the variation of the net debt of the public sector with the private sector. The Treasury figures, also disclosed today, are calculated from central government expenses.
*Translated by Mark Ament
